Lean is not a black and white. There is a connection between the transaction and holding costs. You can see how the transaction cost changes by the size of the batch.
The more items I transfer at once, the lower the overall transaction cost is. On the other hand, the more items I have in a batch, the larger my inventories are, which increases the holding cost.
The optimal batch size is at the minimum of the aggregation of the transaction and holding costs. The aggregated values form a U-Curve, and it’s not an exact science, rather, a sweet spot.
More Examples:
U-Curve illustrates the number of batch sizes
U-Curve Optimization is a common effect in Lean, it highlights trade-offs which vary by context. Must understand transaction and holding costs.
Applies to collocation since there are greater holding costs due to batching and lower transaction costs. Want the intersection.
Applies to Iteration length, number of stories in a Iteration, number of features in a PI, amount of code developed before check in etc. etc.